Quarterly GAAP EPS were $0.19, down from $0.29 in the previous quarter; non-GAAP EPS were $0.26, down from $0.35 in the previous quarter.

NVIDIA (NASDAQ: NVDA) today reported revenue for fiscal 2012 ended Jan. 29, 2012 of $4.00 billion, up 12.8 percent from $3.54 billion in fiscal 2011. GAAP earnings per share for the year were $0.94 per diluted share, an increase of 118.6 percent over $0.43 in fiscal 2011. Non-GAAP earnings per share for fiscal 2012 were $1.19, up 46.9 percent over $0.81 in fiscal 2011.

Revenue for the fourth quarter of fiscal 2012 was $953.2 million, down 10.6 percent from the prior quarter, and up 7.5 percent from $886.4 million in the same period a year earlier.

"I am pleased with our achievements last year. Our GPU business grew sharply. And, with the success of Tegra, we established our position in the mobile market," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "We expect continued growth ahead, as Tegra 3 powers a new wave of quad-core super phones and Kepler, our next-generation GPU architecture, sets new standards in visual and parallel computing."

Annual Highlights

(in millions except per
share data)

FY12
GAAP

FY11
GAAP

FY12
NON-GAAP

FY11
NON-GAAP

Revenue

$3,997.9

$3,543.3

$3,997.9

$3,543.3

Gross margin

51.4%

39.8%

51.9%

45.1%

Operating expenses

$1,408.2

$1,153.3

$1,245.7

$1,096.4

Net income

$581.1

$253.1

$734.4

$476.4

Earnings per share

$0.94

$0.43

$1.19

$0.81

Quarterly Highlights

(in millions except per
share data)

Q4 FY12
GAAP

Q3 FY12
GAAP

Q4 FY12
NON-GAAP

Q3 FY12
NON-GAAP

Revenue

$953.2

$1,066.2

$953.2

$1,066.2

Gross margin

51.4%

52.2%

52.5%

52.5%

Operating expenses

$367.7

$359.6

$325.2

$317.6

Net income

$116.0

$178.3

$158.1

$217.0

Earnings per share

$0.19

$0.29

$0.26

$0.35

On a GAAP basis, the company recorded net income of $116.0 million, or $0.19 per diluted share, for the fourth quarter of fiscal 2012. That compares with net income of $178.3 million, or $0.29 per diluted share, in the prior quarter and $171.7 million, or $0.29 per diluted share, in the same period a year earlier.

On a non-GAAP basis -- which excludes certain charges or credits, as applicable in the fiscal quarter, and the tax impact associated with such items, including: stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, and legal settlements -- net income was $158.1 million, or $0.26 per diluted share. That compares with non-GAAP net income of $217.0 million, or $0.35 per diluted share, in the prior quarter, and net income of $142.4 million, $0.24 per share, in the same period a year earlier.

GAAP gross margin was 51.4 percent, compared with 52.2 percent in the previous quarter and 48.1 percent in the same period a year earlier. Non-GAAP gross margin, which excludes stock-based compensation and a legal settlement charge, was 52.5 percent and compares with 52.5 percent in the previous quarter and 48.3 percent in the same period a year earlier.

GAAP operating expenses are expected to be approximately $383 million; non-GAAP operating expenses are expected to be approximately $340 million.

GAAP and non-GAAP tax rates are expected to be approximately 20 percent for the fiscal year 2013; and approximately 16 percent for the year, if the research tax credit is reinstated into U.S. tax law. Our annual projected tax rates reflect our expectation for the quarter, excluding any discrete tax events that may occur, which, if realized, may increase or decrease our GAAP and non-GAAP tax rates.

We estimate depreciation and amortization for the first quarter to be approximately $52 million to $56 million. Capital expenditures are expected to be in the range of $35 to $45 million.

Diluted shares for the first quarter are expected to be approximately 622.5 million.

Fourth Quarter Fiscal 2012 Highlights:

NVIDIA's Tegra 3® processors started shipping to consumers in the Asus Transformer Prime tablet. The tablet is the first to run Android 4.0, "Ice Cream Sandwich." Asus also announced a $249 tablet to be based on Tegra 3.

Other Tegra 3 devices announced in the quarter include:

Asus Transformer Prime TF700T, similar to the Prime, but with a 1920x1200 resolution display.

NVIDIA announced NVIDIA Maximus™ technology, which increases productivity by enabling design and simulation to be accelerated on a single workstation.

CFO Commentary
Commentary on the quarter by Karen Burns, NVIDIA interim chief financial officer, is available at www.nvidia.com/ir.

Conference Call and webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter fiscal 2012 financial results and current financial prospects today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To listen to the call, please dial (706) 679 2572. A live webcast (listen-only mode) of the conference call will be accessible at the NVIDIA investor relations web site www.nvidia.com/ir and at www.streetevents.com. The webcast will be recorded and available for replay until the company's conference call to discuss its financial results for its first quarter fiscal 2013.

Non-GAAP Measures
To supplement NVIDIA's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income tax expense, non-GAAP net income, and non-GAAP net income, or earnings, per share. In order for NVIDIA's investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude legal settlements, a charge related to the weak die/packaging material set that was used in certain versions of the NVIDIA's previous generation MCP and GPU products, net of insurance reimbursement, stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, and the associated tax impact of these items, where applicable. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

Certain statements in this press release including, but not limited to statements as to: the company's financial outlook for the first quarter of fiscal 2013; the benefits of NVIDIA Maximus technology; the company's continued growth; the success and momentum of Tegra 3; the impact of the company's next-generation Kepler architecture; and the effects of the company's patents on modern computing are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission, or SEC, including its Form 10-Q for the fiscal period ended October 30, 2011. Copies of reports filed with the SEC are posted on the company's website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

On January 10, 2011, the Company and Intel entered into a new six-year cross licensing agreement and both parties also agreed to settle all outstanding legal disputes. For accounting purposes, the fair valued benefit prescribed to the settlement portion was $57.0 million.

NVIDIA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

January 29,

January 30,

2012

2011

ASSETS

Current assets:

Cash, cash equivalents and marketable securities

$

3,129,576

$

2,490,563

Accounts receivable, net

336,143

348,770

Inventories

340,297

345,525

Prepaid expenses and other current assets

99,342

42,092

Total current assets

3,905,358

3,226,950

Property and equipment, net

560,072

568,857

Goodwill

641,030

369,844

Intangible assets, net

326,136

288,745

Other assets

120,332

40,850

Total assets

$

5,552,928

$

4,495,246

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

335,072

$

286,138

Accrued liabilities and other current liabilities

594,886

656,544

Total current liabilities

929,958

942,682

Other long-term liabilities

455,807

347,713

Capital lease obligations, long term

21,439

23,389

Stockholders' equity

4,145,724

3,181,462

Total liabilities and stockholders' equity

$

5,552,928

$

4,495,246

NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Twelve Months Ended

January 29,

October 30,

January 30,

January 29,

January 30,

2012

2011

2011

2012

2011

GAAP gross profit

$

490,013

$

556,717

$

426,359

$

2,056,517

$

1,409,090

GAAP gross margin

51.4%

52.2%

48.1%

51.4%

39.8%

Stock-based compensation expense included in cost of revenue (A)

3,048

3,049

1,726

11,322

8,308

Legal settlement (D)

7,300

-

-

7,300

-

Net charge against cost of revenue arising from a weak die/packaging material set (B)

-

-

-

-

181,193

Non-GAAP gross profit

$

500,361

$

559,766

$

428,085

$

2,075,139

$

1,598,591

Non-GAAP gross margin

52.5%

52.5%

48.3%

51.9%

45.1%

GAAP operating expenses

$

367,696

$

359,627

$

246,581

$

1,408,218

$

1,153,343

Stock-based compensation expense included in operating expense (A)

(32,388)

(30,180)

(23,640)

(125,032)

(92,045)

Amortization of acquisition-related intangible assets

(5,041)

(5,399)

(2,295)

(17,190)

(9,182)

Net charge against operating expenses arising from a weak die/packaging material set (B)

Other acquisition-related costs are comprised of transaction costs, compensation charges and restructuring costs related to the acquisition of Icera, Inc. that was completed on June 10, 2011.

(D)

Excludes legal settlement charges and benefits as follows:

On February 7, 2012, the Company and Rambus entered into a licensing agreement and both parties also agreed to settle all outstanding legal disputes. For accounting purposes, an additional charge of $7.3 million associated with the fair value prescribed to the settlement portion was recognized for the year ended January 29, 2012.

On January 10, 2011, the Company and Intel entered into a new six-year cross licensing agreement and both parties also agreed to settle all outstanding legal disputes. For accounting purposes, the fair valued benefit prescribed to the settlement portion was $57.0 million.

NVIDIA CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK

Q1 FY2013 Outlook

GAAP gross margin

49.2

%

Impact of stock-based compensation (A)

0.3

%

Non-GAAP gross margin

49.5

%

Q1 FY2013 Outlook

(In millions)

GAAP operating expenses

$

383.0

Stock-based compensation expense included in operating expense

(34.0

)

Amortization of acquisition-related intangible assets

(4.2

)

Other acquisition-related costs (B)

(4.8

)

Non-GAAP operating expenses

$

340.0

(A)

Represents $2.8 million of stock-based compensation expense included in cost of revenue.

(B)

Other acquisition related costs are comprised of transaction costs, compensation charges and restructuring costs related to the acquisition of Icera, Inc. that was completed on June 10, 2011.